PROPERTY TRANSFER TAX ACT

Arrangement of Sections

    Section

    1.    Short title

    2.    Interpretation

    3.    Functions and powers of Commissioner-General

    4.    Property transfer tax

    5.    Realised value

    6.    Exemptions

    7.    Liquidators, receivers, trustees in bankruptcy etc.

    8.    Transfer by agents, mortgages etc.

    9.    Returns, notices, etc.

    9A.    Penalties under the Income Tax Act to apply

    9B.    Transactions designed to avoid tax liability.

    10.    Objections and appeals

    11.    Payment of tax and penalty for late payment

    12.    Recovery of tax

    12A.    Tax information exchange agreements and mutual assistance in tax matters

    12B.    Disclosure of information

    13.    Regulations

AN ACT

to provide for the charging and collection of a tax based on the value realised from the transfer of certain property in the Republic; and to provide for matters connected with or incidental to the foregoing.

[30th March, 1984]

Act 12 of 1984,

Act 4 of 1986,

Act 11 of 1987,

Act 28 of 1990,

Act 4 of 1994,

Act 4 of 2002,

Act 4 of 2003.

Act 3 of 2005,

Act 4 of 2009,

Act 50 of 2010,

Act 13 of 2012,

Act 14 of 2013,

Act 9 of 2014,

Act 16 of 2015,

Act 11 of 2017,

Act 13 of 2019,

Act 22 of 2020,

Act 46 of 2021,

Act 27 of 2022.

1.    Short title

This Act may be cited as the Property Transfer Tax Act.

2.    Interpretation

    (1) ln this Act, unless the context otherwise requires—

"Authority" means the Zambia Revenue Authority established under the Zambia Revenue Authority Act;

[Ins by s 2 of Act 22 of 2020.]

…

["Commissioner" rep by s 2(a) of Act 4 of 2002.]

"Commissioner-General" means the Commissioner-General appointed under section 19 of the Zambia Revenue Authority Act;

[Ins by s 2(b) of Act 4 of 2002.]

"financial service provider" has the meaning assigned to the words in the Banking and Financial Services Act;

[Ins by s 2(b) of Act 27 of 2022 w.e.f. 1 January 2023.]

"group of companies" means a holding company together with all its subsidiaries;

[Ins by s 2(a) of Act 13 of 2012.]

"holding company" means a company that—

    (a)    holds the majority of the voting rights in another company;

    (b)    is a member of another company and controls a majority of the voting rights on its own or pursuant to an agreement entered into with the other members; or

    (c)    is a member of another company and controls, and has the right to appoint or remove a majority of, the board of directors in that other company;

[Ins by s 2(a) of Act 13 of 2012.]

"immediate family" means a spouse, child, duly adopted child or step-child;

"intellectual property" includes a patent, trademark, copyright or industrial design;

[Ins by s 2(a) of Act 11 of 2017.]

"land" includes any building, structure or other improvement thereon;

"mineral processing licence" has the meaning assigned to the words in the Mines and Minerals Development Act;

[Ins by s 2(b) of Act 46 of 2021 w.e.f. 1 January 2022.]

"mining right" has the meaning assigned to it in the Mines and Minerals Development Act;

[Ins by s 2(a) of Act 13 of 2012; am by s 2 of Act 16 of 2015.]

"person" includes a partnership;

"property" means—

    (a)    a land in the Republic;

    (b)    a share issued by a company incorporated in the Republic or by a company incorporated outside the Republic where the company directly or indirectly owns at least 10 per cent of the shares in a company incorporated in the Republic;

    (c)    a mining right issued under the Mines and Minerals Development Act;

    (d)    a mineral processing licence issued under the Mines and Minerals Development Act; and

    (e)    intellectual property;

[Subs by s 2(a) of Act 27 of 2022 w.e.f. 1 January 2023.]

"realised value" means the value, as calculated in accordance with the provisions of section 5, of any property liable to tax;

"Registrar" means—

    (a)    the person appointed as Registrar under section 366 of the Companies Act; and

    (b)    the person appointed as Registrar under section 3 of the Lands and Deeds Registry Act and includes an Assistant Registrar and any person appointed to act in any of such capacities;

[Subs by s 2 of Act 3 of 2005.]

"related company" includes—

    (a)    companies connected directly or indirectly through shareholding or equity;

    (b)    any joint venture owned or operated jointly with or an unrelated company;

    (c)    connected companies; or

    (d)    companies connected through management and control;

[Ins by s 2(a) of Act 11 of 2017.]

"share" includes a stock, certificate, warrant or equivalent rights, and an interest in a mining right or an interest in a mineral processing licence;

[Subs by s 2(a) of Act 27 of 2022 w.e.f. 1 January 2023.]

"tax" means the property transfer tax charged under this Act;

"transfer"—

    (a)    in relation to land, excludes—

        (i)    letting or sub-letting;

        (ii)    leasing, under-leasing or sub-leasing, for a period of less than five years;

    (b)    in relation to a share, excludes the allocation of the same by the company to the member in whose name it is first registered.